Economy
Severe Sagaing earthquake affected lives, buildings and infrastructure
The 7.7 magnitude earthquake hit on 28 March with an epicenter of Sagaing near Mandalay, bringing down scores of buildings and damaging other infrastructure like the city’s airport. Significant damages were reported in Mandalay, Sagaing Region and Nay Pyi Taw Council area. The main earthquake was followed by several aftershocks in Mandalay region and Nay Pyi Taw Council. A total of 2,506 died, 270 lost and 3,900 injured as of 31 March noon. Ayeyawaddy River crossing old Sagaing Bridge major destroyed and new bridge faced minor destruction. Many buildings in these three regions collapsed. Intercity road and rail infrastructure and highways, expressways in affected areas destroyed. The State Administration Council Chairman invited any country or organization to come and assist the victims. Rescue teams from Russia, China, India and Singapore arrived to boost earthquake search and rescue operations. International assistance is entering Myanmar to provide assistance to earthquake victims.
The severe earthquake and aftershocks caused extensive damage to power transmission lines, substations, transformers, and related infrastructure leading to widespread electricity outages in many areas including in Yangon city. Restoration work is being carried out with urgency to restore power as quickly as possible.
National Planning Law and Union Tax Law released
As of 31st March, National Planning Law and Union Tax Law were released by the Government. The FY 2025-2026 National Planning Law promulgated on 31th March 2025, the country achieved GDP growth by 2.9% in 2024-25 FY and the growth target will be at 3% in FY 2025-26. GDP by composition, the service sector has been the highest composition with 43.5%, and followed Industry Sector by 33.2% and Agriculture Sector by 23.3%. The growth rates achieved by sectors were 4.2% in Service Sector, 2.3% in Industry Sector and 1.2% in Agriculture in FY 2024-25.
Challenges and Opportunities Myanmar Will Have in the Multipolar World Beyond 2025
The Forum on the Challenges and the Opportunities Myanmar Will Have in the Multipolar World Beyond 2025 took place at the Myanmar International Convention Centre I in Nay Pyi Taw on 22 March 2025, with an address by Chairman of the State Administration Council Prime Minister Senior General Min Aung Hlaing. Myanmar and its neighbouring countries have a population of nearly four billion, accounting for approximately 50 per cent of the world’s population. This presents a strong market for exporting the country’s goods. Experts in geopolitics and geoeconomics from China, Russia, India, Japan, Thailand, Italy, and Nepal, along with local experts, participated in discussions on three topics “The Role of Myanmar and Asia in a Changing Geopolitical World”, “Geoeconomic Challenges and Promising Opportunities Myanmar will face beyond 2025”, and “Geopolitical Challenges and Promising Opportunities for Myanmar Beyond 2025”
Finance
CBM raises interest rate on Average Excess Reserve
THE Central Bank of Myanmar increased the interest rate on the Average Excess Reserve that banks must maintain in the kyat to six per cent on 21 March 2025. Intending to improve the liquidity of banks and enable banks to earn more interest, the Central Bank of Myanmar (CBM) raised interest on average excess reserve at 3.8 per cent, that is the Cash at Bank (CAB) held by the banks, according to Directive 4/2024 dated 30 April 2024. This decision was made to curb inflation, reduce the increase in cash in circulation, build interest rate structure, facilitate banking operations and ensure stability in the banking industry with more interest income. The amendment stated that the banks that hold an average excess reserve exceeding K7 billion are at least entitled to enjoy the interest. Excess reserves held by the banks are limited to K50 billion. CBM will periodically amend the minimum and maximum excess reserve ratios and the interest rate on average excess reserve to align with market demand. Interest payments will be uniformly applied to state-owned banks, private banks and foreign bank branches that are authorized to execute retail banking services in the kyat.
US dollar and gold price stable
Kyat was almost stable to Kyat 4,450 against US dollar in March due to continuous injection of the Central Bank of Myanmar (CBM). CBM pumped over US$ 160 million with the online trading rate of K 3594/$ to those importing edible oil, fertilizer, pharmaceuticals, and medical devices on online trading platforms and also injected 3.6 million yuan and 517 million Thai Bahts in March. Gold price was increased to K 7 million from K 6 million per tickle in the market due to increasing trends of world gold prices.
Trade
Myanmar achieved below target with US$25 B in foreign trade in FY2024-2025
MYANMAR’S foreign trade is expected to meet US$33 billion in the financial year 2024-2025 beginning 1 April. However, the external trade has achieved to $25.79 billion as of 12 March this FY, performing 78 per cent of the trade target so far. Therefore, the National Export Strategy Public-Private Export Promotion Committee asked the related governmental and non-governmental institutions and exporters to coordinate matters to boost exports to double.
Cement prices decline due to arrangement of cement imports
With cement prices starting to fall in the market, construction entrepreneurs are operating better, according to information from market sources. Cement prices have been falling for about a week. Previously, a 50 kg bag of cement was K30,000 and now, it is declined to K19,000. Cement prices rose after a shortage, but since the last week of February, prices have started to fall with the regular entry of imported cement into the market from overseas trade and Kaw Thoung border trade.
Manufacturing
Myanmar Garment industry targets global markets with strategic goals for quality garments
MYANMAR Garment Manufacturers Association (MGMA) will set strategic goals for the industry to penetrate global markets with high-quality, value-added products. It will develop a most profitable industry with ethical and responsible operations, according to the 10-year strategic plan (2025-2034) of the MGMA. With the industry estimated to be worth about US$5 billion in 2025, the MGMA expects it to employ 1.2 million to 1.6 million workers in the next decade and grow to a $15 billion industry. The strategic plan aims to create a collaborative and innovative industrial environment for Myanmar’s garment sector to achieve long-term success by addressing current challenges and realizing potential. It also includes a robust strategy to address key areas including stakeholder networking and financial resources and to develop a workforce for the economic growth expected in the decade, training, upgrading technology, and strengthening infrastructure. The Myanmar garment sector earned $4.46 billion in export revenue in 2024, down by about $750 million from 2023, according to the report.
Energy
Thilawa SEZ rice mills to adopt solar energy by May
SOLAR system installation at rice mills that are being developed in Thilawa Special Economic Zone in Thanlyin Township, Yangon Region, is slated to be completed in May, according to the Myanmar Rice Federation (MRF). Solar panels have been installed in 11 rice mills to generate 15 megawatts of electricity. Those 11 mills are driven by solar panels with a capacity of 15 megawatts. The installation is nearly finished. Rice mills powered by solar energy will reduce the consumption of electricity from the national power grid. It will reduce reliance on the national grid as well as contribute to a greater amount of electricity to other industrial businesses nearby. It is a kind of solar power plant. It needs a large capital of K2.5-3 billion per megawatt. This installation project commenced in 2023. Moreover, rice mills in Labutta Township in Ayeyawaddy Region, Bago and Yangon regions will be equipped with solar energy as well. Solar system installation projects will be expanded to meet growing energy consumption industry sector.